The IB Economics HL Formula Booklet (officially the Economics formula sheet) is provided during Paper 2 (Quantitative) and Paper 3 (HL only).
⚠️ The booklet contains no theory, no definitions, no diagrams — only formulas, multipliers, and some tax/Math rules. ib economics hl formula booklet
$$ Terms\ of\ Trade = \fracAverage\ export\ price\ indexAverage\ import\ price\ index \times 100 $$ If the result > 100, the country is better off (exports buy more imports). DP HL students use it extensively in Paper
| Concept | Formula |
|---------|---------|
| GDP (expenditure) | C + I + G + (X − M) |
| GNI | GDP + Net income from abroad |
| Inflation rate | (CPI_new − CPI_old) / CPI_old × 100 |
| Unemployment rate | (Unemployed / Labour force) × 100 |
| Labour force | Employed + Unemployed |
| Multiplier | 1 / (1 − MPC) or 1 / (MPW) (MPW = MPS + MPT + MPM) |
| Output gap | (Actual GDP − Potential GDP) / Potential GDP × 100 | ⚠️ The booklet contains no theory, no definitions,
The booklet provides the standard formula: $$ PED = \frac%\ change\ in\ quantity\ demanded%\ change\ in\ price $$
HL Specific Twist: HL students must calculate PED using the midpoint (arc) formula to avoid directional bias. While the booklet gives you the standard formula, you must remember the expanded version: $$ PED = \frac(Q2 - Q1) / (Q2 + Q1)(P2 - P1) / (P2 + P1) \times 100 $$ Pro tip: The booklet provides the "change over average" method. Use it for perfect scores on calculation questions.
Despite having the formulas, students consistently lose marks in three specific areas: